The concept
The Fed is the U.S. with a dual mandate: maximum employment and stable prices (about 2% PCE ).
Why it matters
Its decisions affect the world's reserve currency and global borrowing costs.
How markets interpret it
statements, dot plots, and press conferences are closely analysed.
How it may relate to gold
Fed policy influences the dollar and real yields, two key gold drivers.
Key takeaways
- Dual mandate: jobs and prices.
- Guidance can matter more than the decision.
Knowledge check
The Fed's inflation target is about…
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